Examples for Porter's Generic Strategies

Example of the week

Cost leadership: Walmart Inc. (WMT) employs a cost leadership strategy. The company is able to offer low prices to its massive customer base because of its scale, efficient supply chain and advanced inventory management.

Differentiation: Starbucks Corporation (SBUX) pursues a differentiation strategy. It sells premium coffee and food products worldwide and creates a unique customer experience.

Cost focus: Southwest Airlines Co. (LUV) adopts a cost focus strategy. It targets budget-conscious travelers who accept no-frills service in exchange for low ticket prices.

Differentiation focus: Ferrari N.V. (RACE) follows a differentiation focus strategy. It sells limited-edition high-performance sports cars to ultra-high-net-worth customers.